How do I set up a project as an LLC?

Reggie Moser · July 10th, 2008, 05:06 PM

Can someone please explain to me what the process is for setting up a project seperately from my company as an LLC for legal reasons? I registered my film project with the state and I received w-2's as if it were a business. Is this the right way, and if so, will I have to continue this same process and pay each year to set a project up? When I spoke with a representative with the state dept he had no clue of what I was talking about, so I assummed I set it up incorrectly.

Thanks in advance,
Reggie

Bill Davis · July 10th, 2008, 08:33 PM

A "company" is typically shorthand for an incorporated business, or corporation - a stand-alone business entity. Corporations have specific functions and requirements and rules of operation. If you follow those, you get specific legal and/or tax benefits (including, importantly, the ability to shield the corporate officers and other decision makers PERSONAL assets from business obligations under some circumstances.)

If you don't follow those rules, someone suing you can "pierce the corporate veil" and come after the personal assets of those operating the enterprise.

An LLC, or Limited Liability Company - is a specific kind of corporation set up to further limit your exposure to certain kinds of business liabilities.

So these are clearly defined legal entities.

A video project, isn't, per se, a legal entity of any kind. It's just a video project. Period.

Now you could certainly set up a Company, or and LLC, and assign all the RIGHTS to the intellectual property generated by a video project to that business entity - but any compelling reason to do so would have to be between you and your CPA, Lawyer, or qualified business advisor.

You need professional advice for this. Not newsgroup advice.

Good luck.

Reggie Moser · July 10th, 2008, 09:08 PM

Thanks Bill, very informative. It's a struggle trying to find legal advice from a entertainment attorney in my area, but the search continues. I'll be seeking a CPA as well.
Thanks again.

July 10th, 2008, 05:06 PM	#1
Reggie Moser New Boot Join Date: Mar 2005 Location: Charlotte, NC Posts: 17	How do I set up a project as an LLC? Can someone please explain to me what the process is for setting up a project seperately from my company as an LLC for legal reasons? I registered my film project with the state and I received w-2's as if it were a business. Is this the right way, and if so, will I have to continue this same process and pay each year to set a project up? When I spoke with a representative with the state dept he had no clue of what I was talking about, so I assummed I set it up incorrectly. Thanks in advance, Reggie

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July 10th, 2008, 08:33 PM	#2
Bill Davis Major Player Join Date: Jan 2004 Location: Scottsdale, AZ 85260 Posts: 706	A "company" is typically shorthand for an incorporated business, or corporation - a stand-alone business entity. Corporations have specific functions and requirements and rules of operation. If you follow those, you get specific legal and/or tax benefits (including, importantly, the ability to shield the corporate officers and other decision makers PERSONAL assets from business obligations under some circumstances.) If you don't follow those rules, someone suing you can "pierce the corporate veil" and come after the personal assets of those operating the enterprise. An LLC, or Limited Liability Company - is a specific kind of corporation set up to further limit your exposure to certain kinds of business liabilities. So these are clearly defined legal entities. A video project, isn't, per se, a legal entity of any kind. It's just a video project. Period. Now you could certainly set up a Company, or and LLC, and assign all the RIGHTS to the intellectual property generated by a video project to that business entity - but any compelling reason to do so would have to be between you and your CPA, Lawyer, or qualified business advisor. You need professional advice for this. Not newsgroup advice. Good luck.

July 10th, 2008, 09:08 PM	#3
Reggie Moser New Boot Join Date: Mar 2005 Location: Charlotte, NC Posts: 17	Thanks Bill, very informative. It's a struggle trying to find legal advice from a entertainment attorney in my area, but the search continues. I'll be seeking a CPA as well. Thanks again.